In real estate, a purchase agreement is a contract between a buyer who wants to purchase a home or other piece of real property and a seller who owns that property and wants to sell it. A real estate purchase agreement is usually proposed by a buyer, and subject to the seller’s acceptance of the terms.

A real estate purchase agreement contract does not actually transfer title of a home, building, or lot. Instead, it provides a framework of the rights and responsibilities of each party before the legal transfer of title can occur.

In other words, an installment contract refers to a purchase agreement of any type of property wherein the buyer pays it in specific periods while the amount gradually increases. Albeit the seller still owns the property, the buyer shall receive the title of ownership once he or she completes the final payment. With our Purchase Agreement Template, just fill in the attached form with buyer and seller details, a description of the property, and the selling price. The template then converts each submission into a sleek PDF document, easy to download, print, or share in a single click. The Kentucky purchase agreement is the standard legal document utilized when 2 parties would like to form a contract for the sale & purchase of a residential property.When a home is on the market, it will usually receive offers from prospective buyers using this very agreement. The seller and individual(s) interested in buying the property must concur on the terms & conditions in which the. E: Sale by Land Contract. The purchase price shall be paid in accordance with the certain land contract attached hereto and incorporated into this contract by this reference. The down payment to be made at the time of closing this sale shall be $and the balance of. The Simple Contract is a kind of contract used by business to keep the health business relationship with other companies. Detailed items need to be included in the contract to restrict both parties. You had better write all the details such as the articles of the agreement, the specification of requirements and price in the contract.

Table of Contents

1. Real Estate Purchase Agreement Details

A simple purchase agreement for real estate will identify the following basic elements:

Buyer and seller details: The full names and contact information of the parties to the contract.
Property details: The address of the property, as well as a legal description of the land to accurately identify the location of the property. A legal description of land will commonly be in metes and bounds and prepared by a licensed surveyor.
Purchase price: The total price to be paid for the property, including any deposits or adjustments.
Representations and warranties: The seller will make certain statements of facts and promises regarding the property that the buyer will rely upon in entering the transaction.
Financing: Will the buyer be financing his or her purchase through third-party financing or seller financing, or will the buyer assume the seller’s existing mortgage?
Contingencies: Any actions or conditions that must occur for the contract to happen.
Title insurance: One party is usually responsible for obtaining title insurance in the name of the buyer. Title insurance is a form of insurance that covers loss of value in the property due to future discoveries of defects in title.
Closing and possession dates: When will the legal transfer occur and when will the buyer be entitled to take possession of the property?
Lead-based paint disclosure: A mandatory disclosure for homes built before 1978. A lead-based paint disclosure provides buyers certain information about lead hazards in the home, providing opportunity for an independent lead inspection.

These additional elements can also be included:

Free Fillable Simple Installment Purchase Contract

Dispute resolution: Many agreements contain a mandatory or optional dispute resolution clause that guides how parties resolve their disputes. This can include using mediation, arbitration, or going through the courts.
Option to terminate: A clause allowing a buyer to back out of a purchase agreement during a fixed period prior to the closing date.
Inspection: The buyer has the right to inspect the home within a specified period of time.
Closing deliverables: Deliverables are the documents that will be transferred to the other party during the closing.
Closing costs: Closing costs are the fees associated with the closing of the property purchase.
Risk of loss: Risk of loss is the liability of either the seller or the buyer for the property if there is damage between the time the contract is created and finalized.
Real estate taxes: Also known as a property tax, real estate taxes are taxes imposed on the land and any structures that are permanently attached to the ground, such as buildings or homes.

Free Fillable Simple Installment Purchase Contract Forms

This agreement may also be called:

Real Estate Contract
Residential Real Estate Purchase Agreement
Agreement to Purchase Real Estate

Common Terms Used in This Agreement

Earnest money deposit: An earnest money deposit is a deposit showing the buyer’s good faith and commitment to proceed with the purchase of the property. In return for the buyer making an earnest money deposit, the seller takes the property off the market. At the closing of the purchase, the earnest money deposit is credited to the purchase price. If the contract is terminated in accordance with the terms of the agreement, the earnest money deposit is usually returned to the buyer.

Contingency: A contingency is a condition that must be met in order for the purchase to occur. If the contingency is not met, the buyer has the option to terminate the contract and not follow through with the purchase. Some examples of common contract contingencies include:

Inspection contingency: Allows a buyer to inspect the property prior to closing to ensure there are no serious defects that would affect the enjoyment or value of the property. Should the property have a serious defect, and seller fails to cure that defect, the buyer would not be required to fulfill his end of the bargain because “the contingency was not met.”
Financing contingency: Allows a buyer to withdraw from the contract and recover his or her earnest money deposit if he or she is unable to secure a loan or mortgage after making a good faith effort to obtain one.
Appraisal contingency: Allows a buyer to withdraw from the contract after a licensed appraiser gives a home appraisal, estimating the property’s value, if the appraiser’s estimated value of the property is less than the agreed-upon purchase price. Sale of home contingency: Allows a buyer to withdraw from the contract if the buyer’s home is not sold by a specified date. This is usually needed for a buyer who needs the funds from sale of his or her house to purchase the new property.

Escrow: Escrow is a neutral third party in charge of holding funds during the purchase transaction. Earnest money deposits are usually placed into escrow. Escrow offers protection for both parties while contractual risks are still outstanding. For example, a buyer could place his or her earnest money deposit into escrow until a home inspection is complete, and be confident that if there are problems with the inspection and the buyer decides not to proceed with the contract, her or she will get the earnest money deposit back from the escrow party.

Closing: Closing is the final step in a real estate transaction between the buyer and the seller. All agreements are finalized, money is exchanged, documents are signed and exchanged, and title of the property passes to the buyer.

2. When Do I Need a Real Estate Purchase Contract?

After watching House Hunters on HGTV for years, it’s finally your turn to go out and find the perfect home. Or you’ve bought a run-down home, poured your money and sweat into fixing